An Interview with Ben Marshall, President of the Virginia Tech Bond and Securities Investing By Students (BASIS)
1. What is BASIS? Please describe how the organization got started.
BASIS stands for Bond and Securities Investing by Students. The organization has a dual mandate to provide educational opportunities to Virginia Tech students as well as to provide a competitive return relative to our benchmark. To the best of our knowledge, BASIS is the largest undergraduate-managed fixed-income fund in the United States. The group manages 1% of Virginia Tech’s endowment, or roughly $4.1 million. BASIS was founded in 2004. With the support of the Virginia Tech Foundation, the Pamplin College of Business, the Finance Department, and various Virginia Tech alumni, BASIS began managing its portfolio in May of 2006. For a little historical context, when we began deploying our capital the yield curve was inverted. Since then the markets have only gotten more interesting. Virginia Tech now features two investment funds – BASIS and SEED. The structure of each group is similar, but SEED focuses on equities while BASIS focuses on fixed-income.
2. How is the organization structured?
Our organizational structure is mirrored after our index. We are grouped into four sectors: Treasuries, Agencies & Sovereigns/Supranationals, Financials, and Industrials/Utilities. We also have two Co-CEOs, a CFO, a CIO, and two faculty advisors. Each trade and strategy is presented at a weekly meeting to provide a forum for discussion, although the sector heads and executives, with input from the advisors, ultimately determine portfolio strategy.
3. Ben, can you tell me about yourself? How did you get involved with BASIS and become CIO?
Sure. I’m currently a senior finance major at Virginia Tech. After a spattering of odd-jobs through high-school, I interned with a mortgage broker for two years before deciding to focus on The Street. I then spent two summers in sales/trading at a bulge-bracket bank in NYC. I’ll be returning full-time next year trading leveraged finance products. I first heard about BASIS when I visited campus and decided to apply my freshman year. I was fortunate enough to gain acceptance and since joining have served in all sorts of capacities, including as an analyst in the Treasuries sector, CFO, Co-CEO, and my current role of CIO.
4. What resources do you use when researching the markets?
I have access to a Bloomberg through BASIS which is what I use primarily, but I am also a regular reader of the WSJ and the Economist. In addition, I like to read blogs like Zero Hedge, Across the Curve, and Seeking Alpha to see what other people are thinking and to contrast their views with my own. But of course, I also have to mention Bulls & Bears!
5. What advice do you have for underclassmen interested in landing a job on Wall Street?
Be tenacious, and when you have your shot let your enthusiasm show through.
6. Where can students go to get more information about BASIS or to reach out to you?
For more information about BASIS please visit: http://www.basis.pamplin.vt.edu/
For more information about SEED, please visit: http://www.vtseed.com/
I’m available at ben313@vt.edu and would he happy to field any questions individually.
